- Canada proposes tough new oil tank car standards and says even improved tank cars coming into service now would have to be off the rails by 2025 at the latest.
- New cars would need thicker tank car walls and an outer cover for thermal protection.
- The announcement comes after a recent series of fiery derailments in Canada and the U.S., including some that involved the newer, improved rail cars, and as more oil increasingly travels by rail due to rising production and a shortage of pipelines.
- The move signals that the U.S. may adopt similar regulations and will increase pressure on the rail car industry to produce enough new cars on a tighter deadline.
- Relevant tickers: CNI, CP, CSX, UNP, KSU, NSC, GWR, BRK.A, BRK.B, GBX, TRN, ARII, RAIL, WAB